KUALA LUMPUR (May 29): HSS Holdings Bhd, a bakery products manufacturer, is looking to raise nearly RM23 million from its listing on the ACE Market.
The initial public offering (IPO), priced at 18 sen per share, will raise RM13.5 million for the company’s expansion and operations, according to its prospectus. The IPO will also raise another RM9.45 million for its selling shareholders who put up their existing shares under an offer for sale.
The Johor-based snack and cookie maker is valued at a price-earnings ratio of 10.5 times based on its net profit of RM8.59 million for the financial year ended Dec 31, 2025 (FY2025), on back of an annual revenue of RM144.4 million. It posted a net profit of RM7.8 million and revenue of RM160.22 million for FY2024.
The company stated in the prospectus that it does not have any dividend policy. Prior to the listing exercise, in April, HSS declared a dividend per share of 0.59 sen, or RM2.5 million in total, for FY2025. The company paid a total dividend of RM3 million in FY2023 and RM8 million in FY2024.
Applications for the IPO will close on June 9, and listing has been scheduled for June 23.
HSS markets a range of bakery products — including cookies, biscuits, cakes and snacks — under its own brands such as SINAR. These products are produced in-house, outsourced to third-party manufacturers and suppliers, or sourced directly from brand owners.
The company is unrelated to listed construction services firm HSS Engineers Bhd (KL:HSSEB).
HSS has a network of 330 wholesalers, five distributors and 117 retailers across Malaysia, Singapore, Australia, and Indonesia.
The company has earmarked 19% of the proceeds from the public issue as capital expenditure for its two manufacturing facilities, 33% for repayment of bank borrowings, and 22% as working capital. The rest will cover listing expenses.
Founder and managing director Goh Chen Chang and Essential Family Ventures Sdn Bhd, a private vehicle controlled by non-executive director See Toh Kean Yaw and Joseph Lee Moh Hon, will pocket the proceeds from the offer for sale.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO.